Prospective business owners in the UK are hesitating due to election uncertainties, according to a recent study.
- 58% of aspiring entrepreneurs are impacted by the anticipated general election.
- Almost half are deterred by economic instability linked to election predictability.
- Concerns regarding tax changes, small business funding, and legislation are prevalent.
- A desire for better work-life balance keeps entrepreneurial spirit alive despite challenges.
Recent research highlights significant hesitancy among aspiring UK entrepreneurs due to the looming general election. A study conducted by FreeAgent shows that 58% of individuals with entrepreneurial ambitions reported being ‘significantly’ or ‘somewhat’ deterred by the upcoming election. This unease is primarily attributed to the potential changes that could accompany a new government.
Economic instability exacerbates these concerns, with 49% of respondents expressing apprehension over the uncertainty surrounding the election date and its consequent impact on the economic environment. Prospective entrepreneurs are wary of the financial climate, influenced by the possibility of political and legislative shifts.
Amidst these trepidations, tax changes, funding, and regulation stand out as key issues. More than one-third of survey participants indicated reluctance to launch a business due to unpredictable shifts in tax regimes. Additionally, 30% are troubled by potential alterations in small business funding and 28% by broader legislative changes.
The cost-of-living crisis adds another layer of deterrence, with 73% of participants delaying business plans. This scenario is more pronounced among women, 33% of whom strongly agree that the crisis has affected their business aspirations, compared to 26% of men.
Despite these challenges, nearly 40% of respondents still aim to pursue entrepreneurship within the next year. Their motivations include achieving better work-life balance, enjoying greater autonomy in work choices, and following personal passions. This echoes findings from previous years, where autonomy was a significant drive for entrepreneurship.
Lastly, the research reveals a gender disparity in confidence levels. Although 62% believe they can overcome business challenges, women report lower confidence in having essential skills, with nearly double the number of women feeling underqualified compared to men. This disparity underscores a need for targeted support to bridge this confidence gap.
Roan Lavery, CEO and co-founder of FreeAgent, states the importance of clear political direction to boost entrepreneurial confidence. He notes that political uncertainty can stall business plans and stresses the need for government policies that support small businesses effectively.
The upcoming election poses significant challenges for prospective entrepreneurs, yet determination remains strong among many individuals.
